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TagsBY TOM HESTER SR.
NEWJERSEYNEWSROOM.COM
UPDATED
Sen. Raymond J. Lesniak (D-Union) is offering two plans to improving casino gambling and saving horse racing in New Jersey that he describes as the optimal solution which will give Atlantic City the best chance to be a world class tourist attraction and a less than optimal solution, but one that will improving gambling operations.
Lesniak said his main proposal would help save Atlantic City as a casino mecca and the $1.1 billion horse racing industry. Preserve 16,000 jobs and add many more.
The senator said he supports the recommendations of Gov. Chris Christie's special gaming commission with regard to Atlantic City, including the elimination of horse racing purse subsidies and he proposes replacing them with revenues from intra-state on-line gaming to provide additional revenues for casinos.
Lesniak said gross revenues from intrastate on-line gaming are estimated to be between $210 million and $250 million and would bring $47 million to $55 million in tax revenues to the state. He said it would also provide 1,586 to 1,903 new jobs and an $71 million to $86 million growth in personal income.
Lesniak said a portion of the new money could be used for purse supplements, a sire stakes program and a sales tax exemption for sire and broodmare transactions, and increase revenue from expanded on-line horse betting. He said reduced racing dates at the Meadowlands which has been successful at Monmouth Racetrack, would keep alive a $1.1 billion industry, save 13,000 jobs and over $100 mil in state and local taxes."And that's just the tip of the iceberg,'' Lesniak said. "The same study outlines the potential for New Jersey, if we act now, to be the Silicon Valley of Internet gaming (with) potential New Jersey revenue (of) $205 million to $472 million and 21,746 to 57,085 jobs.
"Legislation I have introduced, S-490, to authorize internet gaming from servers located in Atlantic City needs to get moving now,'' Lesniak said. ‘It will produce more revenue for reinvestment in Atlantic City, much needed revenue for the state, keep our valuable racing industry alive, and create thousands of jobs for our residents.
"Who could possibly be against this?'' Lesniak added. "The casino industry, that's who! Why? Because it's lobbying for federal legislation which will prevent New Jersey from getting any revenues from Internet gaming. What a tragedy it will be if we let them fleece the people of the state of New Jersey and sell out Atlantic City, the Meadowlands, Monmouth Racetrack and our horse farms in the process.''
Lesniak's said his other plan is designed to make Atlantic City a world class destination and, like his other proposal, save horse racing and save jobs and add more.
The senator said a footnote in the Hanson (Christie's gaming) Commission report "presents a far, far better plan for Atlantic City than the one that was actually recommended.'' The footnote refers to a document prepared by McKinsey & Co. entitled "The NJ Gaming, Sports and Entertainment Commission: Revitalizing Atlantic City."
"It is not clear from the Hanson report whether the commission members just never read the McKinsey document, failed to understand what was being recommended or after a critical evaluation rejected the full plan while adopting some elements,'' Lesniak said " In any event, the Hanson Commission left on the table the makings of a plan that will work.''
The McKinsey & Co. document makes recommendations that fall into three broad categories: Remove the reasons people do not come to Atlantic City. Make the city safer, cleaner and look less urban. Make improvements with broad base market appeal that renovate existing casinos and hotels. Build new restaurants, casinos and hotels. Target non-gaming market segments by providing more entertainment options. And build Las Vegas style casinos and hotels.
"It is a plan, if backed at an appropriate funding level, which could, according to the McKinsey document, almost double potential visitor spending,'' Lesniak said. "The Hanson Report, while it does recognize the need for non casino amenities, provides no funding source. It completely ignores the McKinsey recommendation for existing casino capital expenditures and new casino products.''
Lesniak said it is difficult to project the amount of subsidy that is going to be needed to position Atlantic City as a resort destination. He said it is probably a reasonable estimate to project that the public subsidy will be between $800 million and a $1 billion dollars.
"The Hanson Report provides for no sources of funds for capital development of this magnitude,'' Lesniak said. "There have been studies that show that VLTs (video lottery terminals) at the Meadowlands would have minimal impact on Atlantic City. Other studies show a greater impact. But no studies have been done on the impact of reinvestment in Atlantic City of $1 billion from Meadowlands VLTs, except for the McKinsey document. We should examine this option closely. Based on McKinsey, it's the best option for Atlantic City, the Meadowlands and the racing industry.''
Lesniak has given his proposals to the Legislature's all-Democratic gaming summit panel of which he is a member.
"This summit must not engage in internecine warfare,'' Lesniak said. "It is not necessary to torpedo the Meadowlands and Monmouth Race Track and our horse farms to help Atlantic City. We are allowing hundreds of millions of dollars to go to New York, Pennsylvania, Delaware, Las Vegas, off shore Internet operators and organized crime.
"There's plenty of money leaving New Jersey that can be recaptured and invested in New Jersey, rather than going into the corporate coffers of casino interests headquartered in Nevada,'' the senator said. "It's time to stand up for our interests, for Atlantic City's interests, for Bergen County's interests, for Monmouth County's interests and for the interests of the state of New Jersey, and not allow our gaming policy to be dictated by the interests of Nevada.''
